KUALA LUMPUR, Nov. 26 (Xinhua) -- The Malaysian government planned to impose goods and services tax (GST) at 4 percent in 2011, a Malaysian official said on Thursday.
Malaysian Second Finance Minister Ahmad Husni Hanadzlah made the remarks at the Culture, Ideas and Values Workshop organized by Foundation for the Future at Kajang in the state of Selangor.
In 2005, the Malaysian government planned to introduce the GST on Jan. 1, 2007 but its implementation was later deferred in 2006 to a date yet to be determined.
Ahmad Husni said the GST implementation was important for the country's future as government's revenue source must be sustainable so that the Malaysian government could roll out a good budget.
With the GST in place, the Malaysian government expects an additional 1 billion ringgit (285.71 million U.S. dollars) revenue annually.
However, Ahmad Husni said that the GST, replacing the current sales and services tax that range between 5 and 10 percent, would not lead to an increase in the Consumer Price Index.
He also said that while the bill on GST would be tabled in Malaysia's Parliament this year with its second reading in March 2010 and the implementation at 18 months after the second reading.